What does it cost you to purchase a property in Spain?
If you purchase a built property from a vendor who is not a property developer, you will have to pay a 7 % so called "transfer tax". If the vendor is a property developer, an additional 1 % for "Stamp duty" has to be paid.
If you purchase a piece of land or commercial premises from a property developer, the tax to be paid will amount to 17 %.
The above percentages are calculated on the selling price and come on top of it.
Important enough to mention is also the added value municipal tax (called "plusvalia"). It is common that the seller pays this tax but this could be subject to negotiation. In any case, the contract will mention who is paying this tax.
Aside from taxes, you have to calculate standard lawyer's fees amounting to 1% of the purchase price.
The seller pays the real estate agent's commission.
What does it cost you once you own a property in Spain?
The annual property tax (the rates) going to town hall (called "Impuesto Bienes Inmuebles" or I.B.I.), represents 0,85 % of the land register value ("valor catastral"). The land register value can be found in the last receipt of the tax payment made by the seller. Nevertheless, do not worry; the land register value is much lower than the market price!
As an expatriate resident or as a non-resident, it will avoid you a lot of hassles and time consumption to use the service of a local fiscal advisor for all tax issues. CPI can help you to find the right Company to assist you.
Community fees have also to be taken into consideration and their amounts can vary a lot depending the location and the type of property you purchased. The community fees can be found in the last receipt of the payment made by the seller. Community fees include services and maintenance of communal areas (gardens, pools, roads, lifts.), security costs, electricity and water consumption for the communal areas and so on.. Besides, and for your private use, you will have to get contracts for electricity, water, telephone, satellite television, gardening, cleaning, pool care, etc...
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